By Jared Andreoli, CFP®, CSLP®
The Medical College of Wisconsin (MCW) has garnered recognition not just for its dedication to healthcare and education, but also for its generous benefits package designed to promote the well-being of its employees. Navigating these benefits can be a complex task due to the sheer breadth and depth of what is on offer. Since benefits can account for over 30% of employees compensation, it’s even more important to thoroughly understand and maximize your options. Let’s go through the key components of MCW’s benefits, so you can be confident you’re getting everything you deserve.
Mandatory 403(b)
At MCW, a mandatory 403(b) plan kicks in after two years of service. Employees are required to contribute 6% of their eligible earnings, which MCW generously matches with an 8% contribution. This process is automatic, simplifying your planning. When you reach two years of service, you need to consider the mandatory 6% contribution in conjunction with what you contributed during your first two years of employment in the voluntary 403(b).
Voluntary 403(b)
Immediately upon hiring, employees have the opportunity to contribute to a voluntary 403(b) plan. If you are a high earner, we recommend aiming to max out your 403(b) at $24,500 in 2026 ($25,500 projected for 2027), as well as utilize the pre-tax option. While this plan does have a Roth option, we find that the pre-tax option is best for high earners looking to lower their tax bill. Once the mandatory 403(b) takes effect, reevaluate your voluntary 403(b) contribution to see what changes you should make.
457(b)
You will also have access to a 457(b), which allows employees to contribute up to $24,500 in 2026 ($25,500 projected for 2027). If you have enough room in your cash flow, it’s generally recommended to max out this plan in addition to the 403(b). One important point to note is that if you ever leave MCW, you need to review if your new employer has a 457(b). If they do, then you can roll over the 457(b) into your new account, assuming your new employer allows rollovers.
Yet if you are retiring or going to a workplace without a 457(b), then you have 60 days from your employment termination to make a decision on how to handle those assets. If you don’t make a decision, then a default distribution will occur on April 1st of the year following termination, and the proceeds will be taxed as ordinary income. This can be an expensive and unnecessary tax bill that could inhibit your ability to retire comfortably, so make sure you plan ahead and don’t procrastinate on this important decision.
Disability Insurance
MCW provides both short-term and long-term disability insurance (known as STDi and LTDi) at no cost to eligible employees. Unfortunately, STDi offers little planning flexibility: you receive 70% of weekly base earnings, with a 7-day waiting period and benefits of up to 180 calendar days.
LTDi coverage pays physicians 60% of base monthly earnings, with a maximum monthly benefit of $20,000 and a 180-day waiting period. Because the benefit is based only on base pay and capped at $20,000 per month, many physicians would see a significant drop in income if they could no longer practice. Since your income is your biggest asset and wealth-generating tool, consider an individual own-occupation disability policy to supplement your MCW coverage.
Health, Dental, & Vision
MCW offers two choices for health, dental, and vision insurance. The Basic plan has higher deductibles and copays, but lower premiums; while the Enhanced plan will have lower deductibles and copays, but a higher premium amount. Depending on your family’s circumstances and medical history, either plan could make sense.
FSA and Dependent Care FSA
A flexible spending account (FSA) is an account into which you put pre-tax money you use to pay for certain out-of-pocket healthcare costs. FSAs can cover a wide range of expenses, such as deductibles and copayments, as well as other expenses. For families, we like these accounts because it can lower your annual tax burden while providing funds for health-related expenses, helping to afford necessary care when needed. The same goes for the dependent care FSA, which is highly beneficial for those with daycare-going children.
Life Insurance
MCW provides life insurance of 1x salary up to $500,000. However, you can also buy additional insurance up to $1,000,000 in coverage. With life insurance being so important to your family if you were to pass away, we recommend analyzing your insurance needs to identify the proper amount of life insurance, as well as address any potential coverage gaps.
MCWell360 Wellness Program
MCWell360 is MCW’s wellness program, and it now includes two reimbursement programs that can put a few hundred dollars back in your pocket each year. The fitness reimbursement program pays benefit-eligible employees up to $300 per year if you use a gym, fitness center, or online exercise class an average of eight times per month. The healthy weight management program reimburses up to $300 per year, with a $600 lifetime maximum, when you enroll in a qualified weight management app or program that promotes healthy eating (meal delivery programs don’t qualify). If you already pay for a gym membership or a weight management program, you just need to submit for reimbursement.
Identity Theft Protection and Pet Insurance
MCW also offers a few voluntary benefits that are easy to skip during enrollment.
Identity theft protection: MCW’s plan through Aura monitors far more than your Social Security number, credit cards, and bank accounts. If your identity is compromised, it includes a $5 million restoration policy and a licensed private investigator to help restore it. You can also cover unlimited minor children and up to 10 adults. Physicians’ names, NPI numbers, and license details are publicly searchable, which can make them targets for fraud, so we suggest MCW physicians consider opting in.
Pet insurance: If you have a pet, MCW offers MetLife Pet Insurance with up to 90% reimbursement and the freedom to visit any licensed U.S. vet. Premiums are paid directly to MetLife rather than through payroll.
Maximize Your Benefits to Increase Your Financial Success
Proactively managing your benefits can have profound impacts on your financial health and ability to reach your financial goals. Whether you are starting work at MCW, or reviewing your options during open enrollment which begins on October 21, you owe it to yourself to take advantage of everything you work so hard to obtain.
If you are having trouble making the right decisions, or you aren’t sure how each decision impacts your future financial goals, I’d love to see if I can help. To get started, you can schedule a free consultation, or reach out to us by emailing jared.andreoli@simplicityfinancialllc.com or calling 414-207-6473.
About Jared
Jared Andreoli, CFP®, CSLP®, is the president of Simplicity Financial, a fee-only firm specializing in helping early-career physicians navigate complex student loans and build individualized financial road maps. Since founding the firm in 2017, he has focused on providing a personal, high-touch partnership to help clients solve problems and pursue their long-term goals.
Frequently Asked Questions About Medical College of Wisconsin Benefits
How much will MCW’s disability insurance pay me if I can’t work as a physician?
MCW’s short-term disability pays 70% of your base weekly earnings after a 7-day waiting period, for up to 180 calendar days. If you still can’t work after 180 days, long-term disability pays 60% of your base monthly earnings, up to $20,000 a month. MCW pays for both. The long-term benefit is capped and is based on base pay only. Because of that, we often suggest physicians look at an individual disability policy to replace more of their income.
Should I contribute to both the 403(b) and the 457(b) at MCW?
If your cash flow allows it, contributing to both can make sense for many physicians. The two plans have separate limits, so in 2026 you can put up to $24,500 into each one ($25,500 is projected for 2027). After two years of service, you’re automatically enrolled in MCW’s mandatory 403(b), where you contribute 6% of eligible earnings and MCW contributes 8%.
How much life insurance can I get through MCW, and is it enough?
For 2027, MCW gives you basic life insurance equal to 1x your salary, up to $500,000, at no cost. You can buy voluntary coverage from 0.25x to 8x your salary, up to $1,000,000. If you enroll within your first 31 days, you can get up to 3x your salary (to a maximum of $850,000) without answering health questions. After that, you’ll generally need to answer health questions to qualify. For physicians with student loans, a mortgage, or young children, employer coverage alone often falls short, so we typically suggest reviewing whether a separate term life policy makes sense.
Will MCW pay for my gym membership or a weight loss program?
Through the MCWell360 wellness program, MCW reimburses benefit-eligible employees up to $300 a year if you use a gym, fitness center, or online exercise class an average of eight times a month. A separate program reimburses up to $300 a year, with a $600 lifetime maximum, for a qualified weight management app or program that promotes healthy eating. Meal delivery services don’t qualify.
Should I sign up for MCW’s identity theft protection and pet insurance?
Both are voluntary benefits, and we now suggest MCW physicians consider identity theft protection. The Aura plan monitors much more than your Social Security number, includes a $5 million identity restoration policy and lets you cover unlimited minor children and up to 10 adults. If you have a pet, MetLife Pet Insurance reimburses up to 90% of covered vet costs, which can help with an unexpected accident or illness. Premiums for pet insurance are paid directly to MetLife rather than through payroll.